Prepare Form 1116 with Form 2555 (1040)

Alerts and notices

When preparing a Form 1116 for an activity that has foreign earned income excluded on Form 2555, follow these guidelines.

  1. In the 1116 screen, complete the general information section and enter the form and unit number.
  2. Make sure the 1116 screen is associated with the appropriate taxpayer or spouse Form 2555 by entering code T or S in the T, S, J field.
  3. For a Form 1116 that includes capital gains or losses from foreign sources, enter the foreign gross income.
  4. Enter any information regarding taxes paid or accrued, carryovers, adjustments, and boycott operations.

Gross income calculates from the following:

The Form 1116 Foreign Tax Credit Worksheet reports how the amounts calculate and is designed to be submitted with the return. To override any of the calculated amounts, enter the information in the applicable field in Screen 1116.

Share This